1
00:00:03,187 --> 00:00:04,253
New york city.
2
00:00:04,505 --> 00:00:07,122
[woman] happy new year!
3
00:00:07,124 --> 00:00:10,342
At the dawn of the 80s,
it was exploding
with opportunity.
4
00:00:11,345 --> 00:00:13,962
[newsreader] boom times,
that's what the numbers
signal today,
5
00:00:13,964 --> 00:00:16,682
An economy
that's on a roll
in this country.
6
00:00:16,684 --> 00:00:20,185
A place to seek money,
power, fame.
7
00:00:20,187 --> 00:00:24,690
Amid the glitz and greed,
five titans seized their moment.
8
00:00:27,311 --> 00:00:30,645
By the mid 80s,
they'd figured out
that to get what they wanted,
9
00:00:30,647 --> 00:00:33,190
They just had to go
to the media.
10
00:00:33,192 --> 00:00:36,285
And the media
was more than happy to oblige.
11
00:00:38,039 --> 00:00:40,822
A wall street magician
was basking in the spotlight.
12
00:00:40,824 --> 00:00:43,450
[ivan boesky] I predict
that this is just the beginning.
13
00:00:43,452 --> 00:00:45,952
Even as his crimes
grew more and more brazen.
14
00:00:45,954 --> 00:00:48,547
[james b stewart] this was gonna
come crashing down on him.
15
00:00:48,549 --> 00:00:50,883
A real estate mogul
was waist-deep in red ink.
16
00:00:51,552 --> 00:00:54,503
[natalie byfield] trump was
particularly good
at playing the media.
17
00:00:54,505 --> 00:00:57,056
Even as he convinced the world
it was just the opposite.
18
00:00:57,058 --> 00:01:00,175
Oh donald, oh donald,
you are a big deal.
19
00:01:00,177 --> 00:01:05,180
[emily fox] it is the greatest
charade that donald trump
ever pulled off.
20
00:01:05,182 --> 00:01:07,516
The hotel queen
was winning over the public.
21
00:01:07,518 --> 00:01:09,184
[leona helmsley]
look at the shape of the head,
22
00:01:09,186 --> 00:01:12,187
You can see the brain
just sits there.
I'm very serious.
23
00:01:12,189 --> 00:01:16,316
But behind her castle walls,
she was nothing but wicked.
24
00:01:16,318 --> 00:01:20,329
And as a publicity-hungry
prosecutor plotted his next
heroic act for the papers...
25
00:01:20,581 --> 00:01:25,367
I mean, it was crazy.
Us attorneys aren't supposed
to do that kind of stuff.
26
00:01:25,369 --> 00:01:28,703
A newly christened mob boss
mocked him
in those very same pages.
27
00:01:28,705 --> 00:01:32,415
[newsreader] outfoxing the foxes
in a big stakes game
of cops and robbers
28
00:01:32,417 --> 00:01:34,426
That has made gotti
kind of a legend.
29
00:01:34,428 --> 00:01:36,762
[george gabriel] the downside
to the real mobsters is,
30
00:01:36,764 --> 00:01:38,097
Who needs this attention?
31
00:01:38,099 --> 00:01:39,932
We're a secret organization.
32
00:01:40,884 --> 00:01:43,009
[bryan burrough]
even for a crook,
he was a smart guy.
33
00:01:43,011 --> 00:01:46,230
But he made the mistake
of dealing with people
who weren't.
34
00:01:46,890 --> 00:01:50,517
[bill dowling] she would
lash out at you and I saw it
happen to a number of people.
35
00:01:50,519 --> 00:01:58,358
[tony schwartz] was the story
that I told completely,
ultimately false? Yes.
36
00:01:58,360 --> 00:02:03,363
These five titans would reshape
the city and the world
we live in today.
37
00:02:03,365 --> 00:02:07,075
By the mid 80s,
they'd mastered the art of fame.
38
00:02:07,077 --> 00:02:10,712
But soon they'd learn
that exposure can burn.
39
00:02:34,062 --> 00:02:36,396
[newsreader] when new yorkers
pick up their tabloids,
40
00:02:36,398 --> 00:02:40,567
The daily news and the post
each morning, they expect
the headlines to pack a wallop.
41
00:02:40,569 --> 00:02:42,402
And they do.
42
00:02:42,404 --> 00:02:44,163
For died-in-the-wool
new yorkers,
43
00:02:44,165 --> 00:02:46,948
There's nothing quite like
a good juicy scandal
44
00:02:46,950 --> 00:02:50,502
And in the mid 80s,
the press served up
one after another.
45
00:02:50,913 --> 00:02:54,789
[jonathan mahler] crime, money,
power, what was happening
in this country
46
00:02:54,791 --> 00:02:58,886
Created the sort of perfect
for tabloid journalism
and for this kind of moment.
47
00:03:00,130 --> 00:03:02,964
[fox] every day
it was just a back and forth
48
00:03:02,966 --> 00:03:05,184
Between the daily news
and the new york post
49
00:03:05,186 --> 00:03:08,637
And it helped
the new york tabloids
have constant fodder,
50
00:03:08,639 --> 00:03:10,939
Which they desperately needed
every day.
51
00:03:11,975 --> 00:03:14,976
[michael musto] the 80s
is when the tabloids
really started battling it out.
52
00:03:14,978 --> 00:03:20,073
And the people that emerged
certainly had a knack
for working the media.
53
00:03:20,317 --> 00:03:22,525
[byfield] there was a lot
of attention in the media
54
00:03:22,527 --> 00:03:25,946
To business
and the captains of industry.
55
00:03:25,948 --> 00:03:28,165
They became celebrities.
56
00:03:28,325 --> 00:03:30,542
[glenn plaskin] this was better
than dynasty.
57
00:03:30,544 --> 00:03:33,828
[blake carrington]
damn you alexis,
I'm gonna kill you.
58
00:03:33,830 --> 00:03:35,047
Don't!
59
00:03:35,382 --> 00:03:37,966
[glenn plaskin] this was
real life dynasty.
60
00:03:38,168 --> 00:03:43,472
[charles bagli] at this point,
developers had almost supplanted
movie stars in the gossip column
61
00:03:43,724 --> 00:03:47,676
Everything they did
was so amusing, so wonderful.
62
00:03:47,678 --> 00:03:49,895
[david cay johnston]
and one of the biggest people
63
00:03:49,897 --> 00:03:52,231
Who's benefited from this
is donald trump.
64
00:03:54,643 --> 00:03:59,688
He came, he saw, he conquered.
And as the decade pressed on,
65
00:03:59,690 --> 00:04:03,316
The young developer
from the outer boroughs
was only growing bolder.
66
00:04:03,318 --> 00:04:06,078
[johnston] he had built
trump tower, which made
a tremendous amount of money.
67
00:04:06,080 --> 00:04:09,998
He had two casinos
that were throwing cash at him
like crazy.
68
00:04:10,367 --> 00:04:15,087
[michael kruse] but he also
wants more. More, more, more.
69
00:04:15,089 --> 00:04:18,707
He was determined to see
his name splashed
across the sky line.
70
00:04:18,709 --> 00:04:22,002
But first, he'd need his name
splashed across the headlines.
71
00:04:22,004 --> 00:04:28,174
The fact that new york
was the media capital
of the world allowed him
72
00:04:28,176 --> 00:04:34,147
To create the persona,
to create the celebrity,
create the name donald trump.
73
00:04:34,725 --> 00:04:36,850
The whole ethos
of donald trump's life has been,
74
00:04:36,852 --> 00:04:39,278
"look at me, how rich I am,
look how successful I am."
75
00:04:39,855 --> 00:04:42,531
It's this mythology
that has been built up.
76
00:04:43,284 --> 00:04:45,450
[newsreader] you cannot walk far
in manhattan these days
77
00:04:45,452 --> 00:04:48,570
Without seeing
a piece of real estate
bearing the trump name.
78
00:04:48,572 --> 00:04:51,957
It looked like
a hugely successful operation.
79
00:04:51,959 --> 00:04:58,130
It was important to maintain
that image because image
was reality.
80
00:04:58,281 --> 00:04:59,965
[newsreader] donald trump
has become
81
00:04:59,967 --> 00:05:02,917
One of america's best known
and most successful builders.
82
00:05:02,919 --> 00:05:05,137
[newsreader] turning
a $40 million
real estate business
83
00:05:05,139 --> 00:05:07,547
Into a billion dollar empire.
84
00:05:07,549 --> 00:05:10,475
[letterman] ...Has enough money
to give everyone in the audience
tonight a million dollars.
85
00:05:10,477 --> 00:05:14,271
[applause]
86
00:05:14,556 --> 00:05:18,266
[newsreader] ok. Ok,
we'll see what kind of mood
he's in.
87
00:05:18,268 --> 00:05:20,360
[laughter and applause]
88
00:05:21,155 --> 00:05:25,106
[johnston] at the time,
bankers were doing many
more loans based on reputation
89
00:05:25,108 --> 00:05:29,736
And so when donald gets
magazine covers and tv shows
about how rich he is
90
00:05:29,738 --> 00:05:33,498
And featuring his helicopter,
bankers feel some sense
of confidence in him.
91
00:05:33,500 --> 00:05:37,502
That's why he really wanted
to be on the forbes 400 list.
92
00:05:50,851 --> 00:05:55,470
[sue carswell] back in the 1980s
this john barron guy
was one of his publicists.
93
00:05:55,472 --> 00:05:59,191
He was the go to guy to get,
you know, trump goods.
94
00:06:04,147 --> 00:06:05,980
[carswell] and he would say,
"well, you know,
95
00:06:05,982 --> 00:06:09,201
"I'm just calling for donald
and I need to tell you
this story."
96
00:06:15,042 --> 00:06:17,992
But they were always him.
It was donald trump.
97
00:06:17,994 --> 00:06:20,286
It's not like he has
a subtle voice.
98
00:06:20,288 --> 00:06:23,757
Donald trump as john barron,
it's just donald trump.
99
00:06:24,000 --> 00:06:30,055
[barbara res] john barron
is trump's alter ego, I guess,
I don't know. It was his alias.
100
00:06:30,057 --> 00:06:33,558
He was doing the press,
he was doing the pr.
He was making the phone calls.
101
00:06:33,560 --> 00:06:39,013
[ken auletta] he just concocted
this whole false reality.
102
00:06:39,015 --> 00:06:43,068
So he goes to forbes
and tells them,
"I have all this money."
103
00:07:11,765 --> 00:07:13,890
And forbes puts him
on this list.
104
00:07:14,935 --> 00:07:20,555
[res] I mean, trump was lying
so that he could move himself up
on the forbes 400,
105
00:07:20,557 --> 00:07:22,515
You know,
talking about his wealth.
106
00:07:22,517 --> 00:07:25,193
Wealthy people don't do that,
they keep that to themselves.
107
00:07:26,280 --> 00:07:30,023
[tony schwartz] his life
underneath that persona
and sheen
108
00:07:30,025 --> 00:07:33,860
Was arguably falling apart
economically.
109
00:07:33,862 --> 00:07:39,073
He was over extended on a lot
of his loans, both in
atlantic city and in new york.
110
00:07:39,075 --> 00:07:44,245
At the same time he was buying
all the accouterments
of the wealthy.
111
00:07:44,247 --> 00:07:50,210
The plane, the football team.
His second casino hotel,
the castle.
112
00:07:50,212 --> 00:07:54,714
Actually he had lost
a staggering amount of money,
113
00:07:54,716 --> 00:07:57,592
A billion dollars in ten years,
114
00:07:57,594 --> 00:08:00,929
More than any other individual
in the united states.
115
00:08:00,931 --> 00:08:06,267
One of the most amazing things
about all of this was he's also
writing and publishing
116
00:08:06,269 --> 00:08:12,398
The art of the deal while he is
losing money on every deal
that he was making.
117
00:08:12,400 --> 00:08:15,994
Donald just talk for a minute,
if you would,
about the art of the deal
118
00:08:15,996 --> 00:08:17,946
And your business philosophy.
119
00:08:17,948 --> 00:08:22,075
[donald trump] okay.
You've either got it
or you don't.
120
00:08:22,077 --> 00:08:25,787
The book the art of the deal
was the first thing
that gave donald trump
121
00:08:25,789 --> 00:08:29,082
A sort of national audience
and it sold millions of copies.
122
00:08:29,084 --> 00:08:31,426
It was actually written
by tony schwartz.
123
00:08:32,796 --> 00:08:39,809
Trump was not involved for even
a minute in any aspect
of writing the book.
124
00:08:40,971 --> 00:08:46,608
I wrote the book
and miraculously,
he read the book.
125
00:08:47,477 --> 00:08:48,693
How you doing?
126
00:08:50,030 --> 00:08:53,481
From the very first interview
that I did with him
for the book,
127
00:08:53,483 --> 00:08:59,153
It was clear that there
was almost a complete inability
128
00:08:59,155 --> 00:09:00,989
To sit still
and answer questions
129
00:09:00,991 --> 00:09:02,999
For more than a few minutes
at a time.
130
00:09:03,785 --> 00:09:07,879
Because I couldn't get
from trump detail
on the deals he was doing,
131
00:09:07,881 --> 00:09:12,292
I would ultimately go
to other players in those deals
and try to flesh it out.
132
00:09:12,294 --> 00:09:16,504
What I would discover
is that their version
of what happened in the deals
133
00:09:16,506 --> 00:09:18,339
Was quite different
than his version.
134
00:09:18,341 --> 00:09:21,801
And his version was always
the most self aggrandizing
version
135
00:09:21,803 --> 00:09:24,813
And it was often
an inaccurate version.
136
00:09:25,732 --> 00:09:30,652
So was the story that I told
completely, ultimately false?
137
00:09:31,238 --> 00:09:33,738
Yes. It was.
138
00:09:34,241 --> 00:09:40,528
It was an invented story,
invented at a level far beyond
what I recognized even
139
00:09:40,530 --> 00:09:46,034
At the time, but it was never
anything close to the reality
of who he was.
140
00:09:46,036 --> 00:09:50,663
People who read the book
uncritically come away thinking,
"what a genius he is."
141
00:09:50,665 --> 00:09:52,707
It really put donald
on the map.
142
00:09:52,709 --> 00:09:56,836
[kathleen] trump is taking on
new meaning.
Tycoon, billionaire, maverick.
143
00:09:56,838 --> 00:10:01,099
It's written all over new york
and atlantic city and now
it's on the cover of a book.
144
00:10:01,551 --> 00:10:04,936
How important is your word
and your handshake in a deal?
Or does everything have to be--
145
00:10:04,938 --> 00:10:06,271
Very important.
146
00:10:06,273 --> 00:10:07,981
What? How does it make
the difference?
147
00:10:08,683 --> 00:10:11,901
Handshake and deals are just
to me very important, kathleen.
148
00:10:12,613 --> 00:10:16,564
This was a man who is portraying
his great wealth,
149
00:10:16,566 --> 00:10:19,951
His enormous success,
his growing businesses,
150
00:10:19,953 --> 00:10:24,864
But the reality was is that
he was losing more money
151
00:10:24,866 --> 00:10:28,242
Than I think any american was
at that time.
152
00:10:28,244 --> 00:10:30,870
What do you think people
are gonna get out of it,
if they read it?
153
00:10:30,872 --> 00:10:33,706
I mean, what can someone at home
on a $30,000--
154
00:10:33,708 --> 00:10:38,011
It's really a study of life,
kathleen. How do to it
and how to really make life.
155
00:10:39,089 --> 00:10:41,047
How to make life.
156
00:10:41,049 --> 00:10:43,892
How to make life. How to be
with life and how to live
with life.
157
00:10:45,762 --> 00:10:50,106
It is the greatest charade
that donald trump
ever pulled off.
158
00:10:52,268 --> 00:10:57,271
This is a time period
where we're celebrating money,
159
00:10:57,273 --> 00:10:59,532
And who could make
the most of it.
160
00:11:00,276 --> 00:11:06,906
And the media was very complicit
in exposing how brilliant
and great
161
00:11:06,908 --> 00:11:11,452
And wonderful these people were,
it didn't have to be true.
162
00:11:11,454 --> 00:11:14,130
And that is on us.
163
00:11:14,841 --> 00:11:18,126
[michael kruse] for donald trump
some of that started
to go to his head
164
00:11:18,128 --> 00:11:21,846
And he considered himself
utterly invincible.
165
00:11:21,848 --> 00:11:26,434
He was going to do exactly
what he wanted for as long as
he could get away with it.
166
00:11:31,191 --> 00:11:33,024
[mahler] there had always been
a culture of money in new york.
167
00:11:33,026 --> 00:11:34,642
There had always been
rich people in new york
168
00:11:34,644 --> 00:11:36,945
But there had never been
a donald trump before.
169
00:11:37,689 --> 00:11:40,481
There had always been
luxury hotels in new york
170
00:11:40,483 --> 00:11:43,243
But there had never been
a helmsley palace.
171
00:11:43,537 --> 00:11:45,870
And there had always been
gangsters in new york.
172
00:11:45,872 --> 00:11:48,373
But there had never been
a john gotti,
173
00:11:48,375 --> 00:11:52,794
A guy who was in the tabloids
all the time
and seemingly loved it.
174
00:11:56,216 --> 00:11:59,459
He was the capo
who wanted to be don.
175
00:11:59,461 --> 00:12:02,762
And he decided he wouldn't wait
for his due, he'd seize it.
176
00:12:07,177 --> 00:12:10,303
[newsreader] you are looking
at the body of paul castellano,
177
00:12:10,305 --> 00:12:14,182
The boss of all bosses
of american organized crime.
178
00:12:14,184 --> 00:12:16,851
[newsreader] paul castellano,
a man authorities say
179
00:12:16,853 --> 00:12:19,353
Was the most horrible mafia boss
in the nation,
180
00:12:19,355 --> 00:12:23,074
Was shot and killed
in front of a new york city
restaurant tonight.
181
00:12:24,319 --> 00:12:27,495
[mahler] within hours
everybody knew
that gotti was responsible.
182
00:12:28,490 --> 00:12:31,624
We understood what was going on
through fbi informants.
183
00:12:32,252 --> 00:12:34,368
[george gabriel]
killing the boss
is like the cardinal rule.
184
00:12:34,370 --> 00:12:36,871
You can't do that.
You don't do that.
185
00:12:36,873 --> 00:12:39,090
[michel chertoff] it was
a very bold attack.
186
00:12:39,092 --> 00:12:43,261
[newsreader] authorities believe
the brutal process of succession
is already underway.
187
00:12:47,926 --> 00:12:50,185
[gabriel] gotti called a meeting
of all the captains.
188
00:12:53,181 --> 00:12:56,524
And they say, "all right,
we're not sure what happened
to paul. He's dead."
189
00:12:58,353 --> 00:13:01,529
But we're here tonight
to pick another boss.
190
00:13:02,774 --> 00:13:04,532
[bruce mouw] everyone
in the room knew who did it.
191
00:13:06,402 --> 00:13:09,287
But they had to play along
with this farce.
192
00:13:11,282 --> 00:13:12,916
Frank decicco stands up.
193
00:13:14,369 --> 00:13:16,336
He says, "I nominate john gotti
to become boss
of the gambino family."
194
00:13:18,414 --> 00:13:21,916
[gabriel] the captains
that he conspired with
were walking around them all,
195
00:13:21,918 --> 00:13:24,544
Basically they were there armed
and if anybody
was gonna oppose it,
196
00:13:24,546 --> 00:13:26,054
That was gonna be a problem.
197
00:13:28,591 --> 00:13:34,729
Everybody in the room, okay,
we're good. The family's intact.
198
00:13:35,431 --> 00:13:36,940
Everybody leaves happy.
199
00:13:38,819 --> 00:13:41,143
[newsreader] john gotti
allegedly runs an enterprise
200
00:13:41,145 --> 00:13:42,987
As powerful
as many giant corporations.
201
00:13:44,491 --> 00:13:48,910
[sean deveney] once he got
to power, gotti now wanted to be
the peacock.
202
00:13:50,113 --> 00:13:55,408
Because he'd spent so long
feeling underappreciated
within the gambino family,
203
00:13:55,410 --> 00:13:59,420
When he gets to the top of it,
it almost wants to make up
for lost time.
204
00:14:00,957 --> 00:14:06,135
[ed mcdonald] he became
much more noticeable. He craved
the attention he was getting.
205
00:14:06,629 --> 00:14:10,682
[gabriel] all of a sudden he
starts wearing the $2000 suits
and the handmade ties.
206
00:14:11,009 --> 00:14:15,144
And he's going out
to the finest restaurants,
clubs.
207
00:14:15,972 --> 00:14:19,181
He's attracting
page six attention.
208
00:14:19,183 --> 00:14:20,775
He's living the life.
209
00:14:21,019 --> 00:14:23,352
[newsreader] gotti has become
quickly recognizable,
210
00:14:23,354 --> 00:14:28,199
If only for his custom-made
suits and his frequent stops
at the stylarama hair salon.
211
00:14:28,526 --> 00:14:35,197
[vito bollettieri] he's got
very good taste. He likes
his hair extremely perfect.
212
00:14:35,199 --> 00:14:38,543
This is against everything
that the mafia has ever done
213
00:14:38,545 --> 00:14:41,045
And the way
it's conducted business.
214
00:14:41,047 --> 00:14:45,291
There's a term in italian
called omerta ,
which basically means "silence."
215
00:14:45,293 --> 00:14:49,128
If you're a boss you don't want
anybody to know you're a boss.
216
00:14:49,130 --> 00:14:54,517
And that's why generations
of mafia heads before him
hadn't acted that way.
217
00:14:55,011 --> 00:15:00,640
He is handsome,
he does wear $2000 suits.
He is well groomed.
218
00:15:00,642 --> 00:15:03,234
Every hair is always in place.
He's quick with one liners.
219
00:15:04,228 --> 00:15:07,188
[mcdonald] john gotti was loved
by the tabloids.
220
00:15:07,190 --> 00:15:09,649
And by the television stations,
they just couldn't get enough
of him.
221
00:15:09,651 --> 00:15:13,152
I mean, he was good copy.
And john gotti fed into this.
222
00:15:13,154 --> 00:15:16,998
People just, people loved
watching him, loved seeing
this whole spectacle unfold.
223
00:15:17,083 --> 00:15:23,254
We have here john gotti's
top ten tax tips.
John gotti's top ten tax tips.
224
00:15:23,256 --> 00:15:28,259
I've met him, I think he's
a wonderful man. I think he's
probably largely misunderstood.
225
00:15:28,261 --> 00:15:30,261
[laughter]
226
00:15:30,263 --> 00:15:34,173
Quite frankly there were
a lot of people, you know,
they just dismissed
227
00:15:34,175 --> 00:15:38,177
How bad of a guy he was.
And that was the knack
that he had.
228
00:15:38,179 --> 00:15:42,523
Number nine: Guys who escape
from the trunk of your car may
be considered business losses.
229
00:15:42,609 --> 00:15:44,016
[laughter]
230
00:15:44,602 --> 00:15:46,936
And number eight:
No matter how much
he relies on your business,
231
00:15:46,938 --> 00:15:49,280
A funeral director
does not count as a dependent.
232
00:15:49,449 --> 00:15:50,740
[laughter]
233
00:15:55,530 --> 00:16:00,291
But he was a killer. I mean,
this was not a tv show.
234
00:16:02,954 --> 00:16:05,630
Under his leadership,
as with all the bosses,
you know,
235
00:16:05,632 --> 00:16:08,257
People who got in the way
wound up getting hurt.
236
00:16:08,626 --> 00:16:10,343
He was ruthless.
237
00:16:11,805 --> 00:16:14,138
Gotti's executed someone
because he didn't show up
when gotti summoned him.
238
00:16:14,757 --> 00:16:17,258
And he severed his head off.
239
00:16:17,260 --> 00:16:22,888
James mcbratney,
robert dibernardo,
tommy spinelli, big gus sclafani
240
00:16:22,890 --> 00:16:25,817
Gotti was just a blood thirsty,
violent criminal.
241
00:16:25,819 --> 00:16:27,986
As the gambino family head,
242
00:16:27,988 --> 00:16:33,649
It has become a much more
violent, violent institution
than it was previously
243
00:16:33,651 --> 00:16:35,493
Because gotti,
that's his outlook,
244
00:16:35,495 --> 00:16:39,038
Is if I can't get my way,
I'm just gonna kill you.
245
00:16:39,657 --> 00:16:41,907
He was the jekyll and hyde
if you will, right,
246
00:16:41,909 --> 00:16:45,411
The guy that the public
got to see
and what they didn't see
247
00:16:45,413 --> 00:16:48,956
Was the ruthless guy
behind those closed doors
248
00:16:48,958 --> 00:16:52,501
Who's ordering hits,
taking over business,
249
00:16:52,503 --> 00:16:55,555
Who's doing whatever he wants
in a very strong way.
250
00:16:56,257 --> 00:16:59,759
Downside to the real mobsters
is who needs this attention?
251
00:16:59,761 --> 00:17:03,980
This isn't what we do.
We're a secret organization.
But for john, it worked.
252
00:17:04,524 --> 00:17:08,443
If you're going
to be that public, it makes him
a target to law enforcement.
253
00:17:08,862 --> 00:17:13,105
And this was a guy
who was not careful, this was
a guy who was violent
254
00:17:13,107 --> 00:17:16,200
And this was a guy
who was basically doomed
255
00:17:16,202 --> 00:17:19,787
To take the mafia
and see it implode on itself.
256
00:17:22,492 --> 00:17:25,034
In the mid 80s,
new york was booming
257
00:17:25,036 --> 00:17:28,546
And the biggest winners
were putting on
the greatest show on earth.
258
00:17:28,548 --> 00:17:31,290
And yet they faced increasingly
stiff competition
259
00:17:31,292 --> 00:17:34,844
Because a revolution
in television
was about to change everything.
260
00:17:36,172 --> 00:17:38,380
I want my mtv.
261
00:17:38,382 --> 00:17:40,308
I want my mtv.
262
00:17:40,560 --> 00:17:43,552
[announcer] mtv music television
263
00:17:43,554 --> 00:17:46,180
It was the ultimate springboard
for fame.
264
00:17:46,182 --> 00:17:50,610
Transforming local celebrities
from new york's music scene
into television superstars.
265
00:17:52,522 --> 00:17:55,406
We've gotta look at the ramones
and their triumphant return
266
00:17:55,408 --> 00:17:58,785
To their original starting place
right here in new york city.
267
00:17:59,529 --> 00:18:04,198
[kurt andersen] mtv did express
a certain kind
of new york inflected cool.
268
00:18:04,200 --> 00:18:10,371
And the density of club culture
and street culture and graffiti
as art adding to the sense of,
269
00:18:10,373 --> 00:18:14,708
"look at all this innovative,
stylish stuff that is happening
in the city."
270
00:18:14,710 --> 00:18:18,879
And in the same way that a lot
of new york city and the kind
of cultural excitement
271
00:18:18,881 --> 00:18:22,716
Was uptown meets downtown,
mtv kind of expressed that.
272
00:18:22,718 --> 00:18:25,394
[michael musto]
and it was exciting.
I watched it day and night.
273
00:18:25,772 --> 00:18:29,890
And to be a music star
at this point, you couldn't just
be a good singer.
274
00:18:29,892 --> 00:18:31,150
You had to have a personality.
275
00:18:32,703 --> 00:18:37,073
You had to be
a self made cyndi lauper.
It was perfect for the 80s.
276
00:18:37,784 --> 00:18:42,069
[lizzy goodman] there was
brilliant art being made
in the form of music videos
277
00:18:42,071 --> 00:18:45,739
By all of the artists
that became the biggest
pop stars of this age.
278
00:18:45,741 --> 00:18:50,294
Madonna, who had come
from this underground club world
in new york,
279
00:18:50,296 --> 00:18:54,132
Understood a visual medium
in a way that artists before her
had not.
280
00:18:54,134 --> 00:18:58,794
And mtv had this role
of populating a stage
281
00:18:58,796 --> 00:19:01,139
That was, all of a sudden,
enormous
282
00:19:01,141 --> 00:19:05,977
With like, really weird,
beautiful, odd pop art.
283
00:19:05,979 --> 00:19:10,764
[darryl mcdaniels] in the 80s,
mtv was able to put hip hop
into living rooms
284
00:19:10,766 --> 00:19:13,234
Not only across the nation,
across the globe.
285
00:19:13,769 --> 00:19:15,436
[michael holman] from hip hop's
humble beginnings,
286
00:19:15,438 --> 00:19:17,572
With the reach and the power
of mtv,
287
00:19:18,107 --> 00:19:22,034
You have artists like run-dmc
appearing on them
and just changing everything.
288
00:19:22,162 --> 00:19:24,078
You know, with "walk this way"
or "my adidas."
289
00:19:24,447 --> 00:19:26,914
[run-dmc rapping]
290
00:19:29,827 --> 00:19:36,624
They knew to take adidas shoes
and make a song out of it
and it becomes a hit record
291
00:19:36,626 --> 00:19:39,927
And kids go to the concert
holding their adidas shoes
up in the air.
292
00:19:40,129 --> 00:19:43,631
Run-dmc exploded,
we was the first
to do everything.
293
00:19:43,633 --> 00:19:47,134
First to go gold, first to go
platinum, first on the cover
of rolling stone .
294
00:19:47,136 --> 00:19:50,313
First on mtv,
which was huge here
in new york city.
295
00:19:51,307 --> 00:19:55,193
[holman] they become
international sensations.
And the world comes to them.
296
00:19:55,195 --> 00:20:00,522
The world comes to hip hop.
That's how big it is.
That's how important it is.
297
00:20:00,524 --> 00:20:04,652
It was a brave new world
and whether you were a rock star
or a titan of industry,
298
00:20:04,654 --> 00:20:07,488
Talent alone
was no longer enough.
299
00:20:07,490 --> 00:20:11,334
It was about selling an image,
and image was everything.
300
00:20:11,544 --> 00:20:13,827
The 80s redefined
what success meant.
301
00:20:13,829 --> 00:20:17,632
You could be
a self-made millionaire
if you radiated something.
302
00:20:19,502 --> 00:20:23,837
[tina brown] they were colorful,
they were rich. They were
calling out to be covered.
303
00:20:23,839 --> 00:20:29,176
You know, this was the beginning
of making ceos celebrities,
which they really weren't before
304
00:20:29,178 --> 00:20:30,886
Before they were just
boring people
305
00:20:30,888 --> 00:20:32,897
Who sat behind desks
that you didn't wanna
write about.
306
00:20:32,899 --> 00:20:36,183
Now all of a sudden they're
posing with manhattan skylines
behind them,
307
00:20:36,185 --> 00:20:38,569
Thrusting themselves
over the desk.
308
00:20:38,571 --> 00:20:42,356
It then became not enough
to be in the fortune 500.
309
00:20:42,358 --> 00:20:45,025
I mean, you wanted to be
the face of your company.
310
00:20:45,027 --> 00:20:48,621
The ultimate example of that
was, of course, leona helmsley.
311
00:20:51,534 --> 00:20:54,585
Whether you knew her
as the queen of mean
or the queen of the palace,
312
00:20:54,587 --> 00:20:58,080
She was a woman reigning supreme
in a man's world.
313
00:20:58,082 --> 00:21:02,093
And with the limelight firmly
fixed on her,
she'd never let you forget it.
314
00:21:02,095 --> 00:21:05,179
Am I comfortable?
I make a living.
315
00:21:06,382 --> 00:21:10,059
[woman] leona helmsley
was her own brilliant
public relations person.
316
00:21:12,430 --> 00:21:15,931
[newsreader] leona helmsley,
the emblem
of the helmsley hotel empire.
317
00:21:15,933 --> 00:21:19,026
[newsreader 2] leona helmsley,
the hotel queen billionaire.
318
00:21:20,780 --> 00:21:24,940
[glenn plaskin] nobody had ever
taken their name and their face
319
00:21:24,942 --> 00:21:30,779
And turned it into such
a personal brand,
much less in real estate.
320
00:21:30,781 --> 00:21:33,949
Trump would follow
in her footsteps, in a sense,
321
00:21:33,951 --> 00:21:36,076
Because he would start putting
his name
322
00:21:36,078 --> 00:21:40,581
On trump tower, trump palace,
trump park, trump everything.
323
00:21:40,583 --> 00:21:46,795
And so she had
just the right face,
name, and personality.
324
00:21:46,797 --> 00:21:51,425
The pillows were gonna be
perfect. The rooms were gonna be
impeccably clean.
325
00:21:51,427 --> 00:21:55,271
The flowers, the carpet,
everything was gonna be perfect.
326
00:21:55,982 --> 00:22:00,818
[elaine silverstein]
this wealthy, regal woman
was going to be attending
327
00:22:00,820 --> 00:22:03,771
To the details in the hotel
and people believed it.
328
00:22:03,773 --> 00:22:08,108
[elaine taylor-gordon]
what could be more fabulous
than being treated like royalty.
329
00:22:08,110 --> 00:22:13,414
But while her guests may have
reveled in her attention,
others were left frozen in fear.
330
00:22:14,116 --> 00:22:17,668
[bill dowling] she had
an incredibly good sense
of how to build a bond
331
00:22:17,670 --> 00:22:21,955
With the customers
of the hotel chain. But everyone
was scared of leona.
332
00:22:21,957 --> 00:22:25,501
She would lash out at you
and I saw it happen
to a number of people
333
00:22:25,503 --> 00:22:27,428
Who had worked
with her for years.
334
00:22:28,130 --> 00:22:30,631
At the restaurant
of the helmsley palace,
335
00:22:30,633 --> 00:22:33,934
If there was as speck of dust
on a glass or a saucer,
336
00:22:34,136 --> 00:22:39,973
She would call the waiter over,
she would fire him and smash
the saucer on the floor.
337
00:22:39,975 --> 00:22:45,312
If service was slow
or if the soup was cold,
she would just go nuts.
338
00:22:45,314 --> 00:22:47,523
"now you're fired, goodbye."
339
00:22:47,525 --> 00:22:51,652
Just like the queen of hearts
in alice in wonderland.
340
00:22:51,654 --> 00:22:54,163
Off with their head!
341
00:22:56,876 --> 00:22:58,250
Off with your head.
342
00:22:58,828 --> 00:23:01,796
Leona was a petty tyrant,
really.
343
00:23:02,665 --> 00:23:06,008
[dowling] leona helmsley
was the most vain person
I've ever known
344
00:23:06,377 --> 00:23:13,265
And this queen stands guard
campaign fed into that like
pouring gasoline on a flame.
345
00:23:14,343 --> 00:23:19,897
She was addicted to fame.
She was no longer
the immigrant girl,
346
00:23:19,899 --> 00:23:22,525
Scrambling up the ladder.
347
00:23:23,894 --> 00:23:26,895
She wanted to step out there
in the gorgeous gown
348
00:23:26,897 --> 00:23:30,157
And have the klieg lights
and be on harry's arm.
349
00:23:30,576 --> 00:23:35,621
It wasn't long after that
that leona and harry
bought dunnellen.
350
00:23:37,366 --> 00:23:41,877
This place fed into her queendom
[laughs]
when she bought it.
351
00:23:44,331 --> 00:23:46,206
[musto] they moved
to greenwich, connecticut.
352
00:23:46,208 --> 00:23:48,759
But they don't just buy a house
in greenwich, connecticut.
353
00:23:48,761 --> 00:23:51,512
They buy an estate,
dunnellen hall.
354
00:23:52,256 --> 00:23:57,551
Dunnellen has 28 rooms,
it's on 26 acres of land,
355
00:23:57,553 --> 00:24:00,896
It's 21,000 square feet
of living space.
356
00:24:01,441 --> 00:24:03,774
[plaskin]it was like a big
english country home
357
00:24:03,776 --> 00:24:08,654
And it all opened out
into this beautiful back lawn.
358
00:24:09,440 --> 00:24:13,659
[leona helmsley] I have sheep.
One is bo, one is peep.
359
00:24:14,120 --> 00:24:16,778
Here bo. It's your mother.
360
00:24:16,780 --> 00:24:18,906
They are dumb.
361
00:24:18,908 --> 00:24:22,868
They walked the grounds
with mike wallis. They talked
about their second pool.
362
00:24:22,870 --> 00:24:24,795
[mike wallis] and up top?
363
00:24:24,797 --> 00:24:28,373
[harry helmsley] on top we're
gonna have, of course,
a dance floor.
364
00:24:28,375 --> 00:24:29,633
[singing] dance
in an old fashioned way.
365
00:24:29,635 --> 00:24:31,960
It's none of my business,
but, how much?
366
00:24:31,962 --> 00:24:34,805
And she would say,
"I don't know."
367
00:24:34,807 --> 00:24:36,924
I don't know.
368
00:24:36,926 --> 00:24:42,563
Dunnellen was very grand.
And she expected to be treated
like a queen.
369
00:24:43,807 --> 00:24:45,766
[dowling] she wanted
to be the real queen
370
00:24:45,768 --> 00:24:49,645
But there was no similarity
between what she was like
in real life
371
00:24:49,647 --> 00:24:53,941
And what the image was
that she portrayed. And that
always catches up with people.
372
00:24:53,943 --> 00:24:57,453
She believed that her standards
were justified at dunnellen.
373
00:24:57,988 --> 00:25:00,915
To her they weren't indulgences,
they were necessities.
374
00:25:03,619 --> 00:25:07,963
So this is the world she created
for herself. And this would be
the world of her downfall.
375
00:25:14,463 --> 00:25:19,850
Plus [laughs] the park lane,
tplus the carlton house,g? ,
376
00:25:19,852 --> 00:25:22,761
Plus the saint moritz
plus the harley hotel.
Plus, plus, plus, plus.
377
00:25:22,763 --> 00:25:24,137
Oh you get it.
378
00:25:24,139 --> 00:25:26,139
[burrough] there was
an acceptance in the 80s
379
00:25:26,141 --> 00:25:28,651
Of, "ya make it, you know,
when you show it."
380
00:25:28,769 --> 00:25:31,645
Bling. I mean,
that was kind of a new thing.
381
00:25:31,647 --> 00:25:35,282
[dowling] greed will always
be with us,
it doesn't disappear.
382
00:25:35,859 --> 00:25:39,361
[maddrick] but by the mid 80s,
the case against greed,
383
00:25:39,363 --> 00:25:44,542
The cultural restraint
is no longer there.
384
00:25:44,544 --> 00:25:47,452
[newsreader] a new thinking
gripped wall street,
a new attitude.
385
00:25:47,454 --> 00:25:49,663
Get yours
while the getting is good.
386
00:25:49,665 --> 00:25:52,833
[gil troy] the gospel of wealth
of new york in the 1980s
is that if you make money,
387
00:25:52,835 --> 00:25:57,462
Make sure to make more and more
and more. 'cause that's
your path to virtue.
388
00:25:57,464 --> 00:26:03,727
And ivan boesky was one of
the great symbols of wall street
greed in the 1980s.
389
00:26:06,473 --> 00:26:11,402
By 1985, the king of arbitrage
was the biggest earner
on wall street.
390
00:26:11,404 --> 00:26:14,730
But what he wanted
even more was fame.
391
00:26:14,732 --> 00:26:19,860
To achieve it, he'd need to keep
his crimes hidden while keeping
himself front and center,
392
00:26:19,862 --> 00:26:22,830
A balancing act he could only
manage for so long.
393
00:26:23,073 --> 00:26:27,042
Our guest tonight, ivan boesky,
wall street's biggest
independent speculator.
394
00:26:27,995 --> 00:26:31,830
The big boys in the business
world, which sparked
words like "corporate takeover."
395
00:26:31,832 --> 00:26:35,334
What's behind
all of the activity now?
What's it mean to us?
396
00:26:35,336 --> 00:26:39,388
Well, a man who knows a lot
about it is ivan boesky.
He's one of the big boys.
397
00:26:41,008 --> 00:26:44,718
[sorkin] he became emblematic
of what wall street was
in the 1980s,
398
00:26:44,720 --> 00:26:48,180
He was the trader
who had this impossible success.
399
00:26:48,182 --> 00:26:52,443
This is the horatio alger story,
but just with a lot of zeros
and commas.
400
00:26:53,771 --> 00:26:58,616
He was driven in a stretch limo
and he was regal looking,
but crude.
401
00:26:58,618 --> 00:27:02,861
[james b stewart] he always
wanted to call attention
to the fact
402
00:27:02,863 --> 00:27:04,955
That he made a lot of money.
403
00:27:05,741 --> 00:27:10,702
For example, he invited a group
of people,
including potential clients
404
00:27:10,704 --> 00:27:13,422
To a dinner
at a very expensive restaurant.
405
00:27:13,707 --> 00:27:18,919
Boesky, in front of all these
people, he said he'd order
everything on the menu.
406
00:27:18,921 --> 00:27:21,930
[harvey pitt] everything
on the menu.
407
00:27:23,717 --> 00:27:28,228
I mean, eating out with ivan
was an adventure.
408
00:27:29,223 --> 00:27:34,735
[stewart] I will then taste
everything on the menu
and then decide what I want.
409
00:27:35,488 --> 00:27:36,945
He was...
410
00:27:38,473 --> 00:27:44,411
...Odd. And he used that
to his advantage.
It was part of his mystique.
411
00:27:45,614 --> 00:27:50,075
By now, boesky had been
the subject of fawning profiles.
412
00:27:50,077 --> 00:27:52,452
He was getting
constant speaking invitations.
413
00:27:52,454 --> 00:27:57,841
It was both a sign
of his own popularity
but also the values of the time.
414
00:27:57,843 --> 00:28:00,252
There were wealthy people
that you saw
415
00:28:00,254 --> 00:28:03,004
Both on the wall street journal
and in people magazine.
416
00:28:03,006 --> 00:28:06,183
This was entirely new.
Business became
part of his zeitgeist.
417
00:28:06,185 --> 00:28:09,511
In america,
one of the great things
about this nation
418
00:28:09,513 --> 00:28:13,181
Is that we can seek profit.
And I'm proud of that.
419
00:28:13,183 --> 00:28:16,768
[newsreader] boesky is pushing
a book he's written
called merger mania .
420
00:28:16,770 --> 00:28:20,480
[stewart] he became so famous,
he wrote a book,
it was a best seller.
421
00:28:20,482 --> 00:28:25,369
Now, his book purported
to explain how he did this.
422
00:28:25,371 --> 00:28:31,283
We now know, of course,
that merger mania was just part
of the cover story.
423
00:28:31,285 --> 00:28:36,455
Nothing in merger mania
had anything to do with his
actual investment decisions.
424
00:28:36,457 --> 00:28:42,377
The information that was vital
to him was
confidential inside information.
425
00:28:42,379 --> 00:28:44,805
It was illegal
to be disseminating.
426
00:28:45,883 --> 00:28:48,967
[bethany mclean] he's getting
inside information
from a variety of sources,
427
00:28:48,969 --> 00:28:53,981
Including marty siegel
and he's using that to bet on
deals and in pretty blatant ways
428
00:28:54,349 --> 00:29:00,520
Boesky and an investment banker
named marty siegel were passing
cash for information,
429
00:29:00,522 --> 00:29:03,690
Getting that information
was steeling form shareholders.
430
00:29:03,692 --> 00:29:08,412
Maybe they tried to convince
themselves it wasn't but that
was pure rationalization.
431
00:29:09,239 --> 00:29:11,749
[mclean] and so, you could look
at that book and say,
432
00:29:11,751 --> 00:29:14,701
"he's got this mammoth ego
that now needs to be fed,"
433
00:29:14,703 --> 00:29:18,038
Or you can see it as him trying
to whitewash what he was doing
434
00:29:18,040 --> 00:29:22,834
By putting this public narrative
out there that's very different
than what was,
435
00:29:22,836 --> 00:29:24,753
What was actually happening.
436
00:29:24,755 --> 00:29:28,089
But there's really, I guess,
at this point, no number
that's enough.
437
00:29:28,091 --> 00:29:33,345
It was incredibly risky
for boesky to be out bragging
438
00:29:33,347 --> 00:29:36,389
And calling attention
to his success.
439
00:29:36,391 --> 00:29:39,684
Which was only gonna lead
to more scrutiny and questions
440
00:29:39,686 --> 00:29:44,022
But he couldn't resist
the allure of publicity.
441
00:29:44,024 --> 00:29:47,692
What do you think the role
of inside information
is in the market today?
442
00:29:47,694 --> 00:29:52,864
I have no way of touching that.
I think it's is
a troubling matter
443
00:29:52,866 --> 00:29:55,867
To the interest of those
of us in the industry
444
00:29:55,869 --> 00:30:00,088
That all such kinds
of behaviors be eliminated
isn't possible.
445
00:30:00,800 --> 00:30:04,543
People who are committing crimes
often can't resist
tipping their hat
446
00:30:04,545 --> 00:30:06,804
And showing that there might be
something going on.
447
00:30:07,381 --> 00:30:10,715
Would it be inside information
if investors such as yourself
448
00:30:10,717 --> 00:30:13,218
Found it to your benefit
to start a rumor?
449
00:30:13,220 --> 00:30:17,097
You have to understand
that I'm a professional and one
doesn't have the time
450
00:30:17,099 --> 00:30:21,485
To even concern himself
with something
as kind of childish as that.
451
00:30:21,487 --> 00:30:24,938
And that's usually
the natural course of events.
452
00:30:24,940 --> 00:30:29,076
It takes a very special kind
of fraudster
to keep reining it in.
453
00:30:30,070 --> 00:30:33,330
[stewart] as boesky is doing
all of this publicity,
454
00:30:33,332 --> 00:30:36,950
He secretly builds
a network of people
455
00:30:36,952 --> 00:30:40,078
Who were funneling
inside information to him
456
00:30:40,080 --> 00:30:43,298
In return for rewards
of one kind of another.
457
00:30:43,959 --> 00:30:47,252
And they were all
enriching themselves illegally.
458
00:30:47,254 --> 00:30:52,007
You could argue that people
always get careless
as their fraud goes on longer.
459
00:30:52,009 --> 00:30:54,342
They get greedier
and they get more reckless.
460
00:30:54,344 --> 00:30:58,355
It's almost akin
to eating potato chips.
461
00:30:58,357 --> 00:31:02,142
The more potato chips you eat,
the more you want.
462
00:31:02,144 --> 00:31:06,021
Ivan was a smart guy.
Even for a crook
he was a smart guy.
463
00:31:06,023 --> 00:31:09,608
But he made the mistake
of dealing with people
who weren't.
464
00:31:09,610 --> 00:31:11,702
Dennis levine
would be exhibit a.
465
00:31:11,853 --> 00:31:15,622
[denis levine] I live for
the high of making those trades,
of doing the next deal.
466
00:31:15,782 --> 00:31:17,875
Dennis levine was a schmuck.
467
00:31:18,785 --> 00:31:21,545
Everybody knew a dennis levine.
468
00:31:21,955 --> 00:31:28,886
A schmucky kid who came here
and cut corners to be somebody.
He was such a putz.
469
00:31:29,713 --> 00:31:34,725
Dennis levine stumbled
into the world
of mergers and acquisitions.
470
00:31:34,727 --> 00:31:37,510
He was hired
by drexel burnham lambert
471
00:31:37,512 --> 00:31:42,900
And trumpeted as their new
investment banking star
who'd be based in new york
472
00:31:42,902 --> 00:31:47,487
To compliment
the milken operation
on the west coast.
473
00:31:48,649 --> 00:31:51,408
Drexel has changed the face
of american finance
474
00:31:51,410 --> 00:31:54,912
And this one man did it
almost single handedly.
475
00:31:54,914 --> 00:31:58,165
It was really drexel, burnham,
and particularly michael milken,
476
00:31:58,742 --> 00:32:05,088
Who used junk bonds to fuel
the takeover booms,
to finance corporate raiders.
477
00:32:05,090 --> 00:32:08,842
To shake up corporate america
in a way that it had never
confronted before.
478
00:32:12,089 --> 00:32:15,849
Drexel burnham lambert
was the center
of the information flow.
479
00:32:16,718 --> 00:32:20,679
[newsreader] dennis levine
impressed colleagues
as being very well wired
480
00:32:20,681 --> 00:32:24,733
To the other
investment banking firms
and to wall street's rumor mills
481
00:32:25,277 --> 00:32:30,772
Dennis levine had no
recognizable banking skills
other than his ability to,
482
00:32:30,774 --> 00:32:33,033
As they used to call it,
work the phones.
483
00:32:33,610 --> 00:32:37,779
He had an extra long cord
so he could wander
around the office
484
00:32:37,781 --> 00:32:41,366
While holding the phone
and talking at the same time.
485
00:32:41,368 --> 00:32:44,411
And so it was very,
very lucrative for him.
486
00:32:44,413 --> 00:32:46,588
It was like a cash register
going off.
487
00:32:48,291 --> 00:32:50,133
[burrough] everybody knew
a dennis levine.
488
00:32:50,135 --> 00:32:53,086
The guy at the next desk
that you didn't like
that talked too loud
489
00:32:53,088 --> 00:32:55,806
About his new summer house
or his new boat.
490
00:32:55,808 --> 00:33:01,311
That was dennis levine
and he was the template for
the sordid young new yorker
491
00:33:01,313 --> 00:33:04,731
Who would do anything
to be anything.
492
00:33:06,268 --> 00:33:11,104
[stewart ]boesky was a dream
for somebody like levine.
493
00:33:11,106 --> 00:33:16,943
So it was naturally someone
that levine would want to
cultivate a relationship with.
494
00:33:16,945 --> 00:33:22,490
And a little bit like boesky,
he managed to put together
a ring of people
495
00:33:22,492 --> 00:33:25,252
Who fed him inside information.
496
00:33:26,580 --> 00:33:32,175
It was very valuable
for both levine and boesky
to have a network of sources
497
00:33:32,177 --> 00:33:37,347
So that these tips never came
from one identifiable source.
498
00:33:38,183 --> 00:33:41,092
They had
a very symbiotic relationship.
499
00:33:41,094 --> 00:33:44,771
And they hammered out
a very specific
profit-sharing agreement.
500
00:33:45,599 --> 00:33:51,019
If levine was the source
of a investment by boesky,
501
00:33:51,021 --> 00:33:53,521
He got 5% of the profits.
502
00:33:53,523 --> 00:33:57,034
If he only gave him
additional information
about something
503
00:33:57,036 --> 00:34:00,871
That boesky
had already invested in,
he got 1% of the profits.
504
00:34:00,873 --> 00:34:02,989
They both knew
what was going on.
They were playing the game.
505
00:34:02,991 --> 00:34:05,825
They were both
blatantly violating the law.
506
00:34:05,827 --> 00:34:09,329
What ivan boesky did
was white line crime.
507
00:34:09,331 --> 00:34:12,382
There ain't no doubt
that this was a crime
508
00:34:12,384 --> 00:34:15,802
And they stupidly thought
they could not get caught.
509
00:34:16,213 --> 00:34:20,974
Dennis levine was cataclysmic
for boesky. This was gonna come
crashing down on him.
510
00:34:28,517 --> 00:34:30,809
There is no quick fix
fwith no end in sight.. Anc
511
00:34:30,811 --> 00:34:35,688
How available is it? Well, today
three public officials
took to the streets to find out.
512
00:34:35,690 --> 00:34:37,491
Ellen fleysher
watched the results.
513
00:34:38,360 --> 00:34:40,652
[ellen fleysher]
you could call it
a mixed metaphor,
514
00:34:40,654 --> 00:34:45,415
The pinstriped trousers
worn by the us attorney topped
by a leather hells angels vest.
515
00:34:45,417 --> 00:34:48,085
The vest supplied
by the drug enforcement
administration
516
00:34:48,087 --> 00:34:50,870
As rudolph giuliani,
and senator alfonse d'amato,
517
00:34:50,872 --> 00:34:53,873
And benjamin baird,
chairman of
the us parole commission,
518
00:34:53,875 --> 00:34:56,468
Went shopping for crack
in washington heights.
519
00:34:56,878 --> 00:35:00,713
I mean, it was crazy.
I mean, giuliani dressed
as a hells angel.
520
00:35:00,715 --> 00:35:05,260
Us attorney's
aren't supposed to do
that kind of stuff.
521
00:35:05,262 --> 00:35:09,556
For a hard driving prosecutor
in the dawn of his career,
the rules were simple.
522
00:35:09,558 --> 00:35:16,238
Be bold, be unapologetic,
and keep everyone watching
by any means necessary.
523
00:35:17,732 --> 00:35:19,899
[rudolph giuliani] people
are not getting
adequate sentences
524
00:35:19,901 --> 00:35:22,619
To really deter this kind
of activity, this is a terrible,
terrible emergency.
525
00:35:22,621 --> 00:35:26,197
I mean, it just showed how
kind of singular giuliani was,
526
00:35:26,199 --> 00:35:30,961
As kind of part law man,
part tabloid figure.
527
00:35:31,130 --> 00:35:36,091
[michael winerip] what he lacked
in natural charm, he sort of
made up for in chutzpah.
528
00:35:36,802 --> 00:35:39,878
He took on
the entire mob leadership.
529
00:35:39,880 --> 00:35:45,267
There was nothing about giuliani
that was not
extraordinarily ambitious.
530
00:35:45,719 --> 00:35:50,438
The commission case goes
to trial and rudy wins,
much to his credit.
531
00:35:50,891 --> 00:35:54,693
He delivered on his promise,
which is rare in life.
532
00:35:55,154 --> 00:35:58,822
[newsreader] at the age of 40,
he is described by friend
and foe alike
533
00:35:58,824 --> 00:36:02,108
As hard working, dynamic,
good at what he does,
534
00:36:02,110 --> 00:36:06,830
And to that list
his detractors add:
Publicity hound.
535
00:36:08,167 --> 00:36:13,003
[troy] rudy giuliani
in the 1980s
really is our superhero.
536
00:36:13,005 --> 00:36:17,841
But he doesn't do it
in traditional american ways,
silently.
537
00:36:17,843 --> 00:36:19,667
He does it
in front of the camera.
538
00:36:19,669 --> 00:36:24,097
He does it with lights
and camera and action
and microphone.
539
00:36:24,299 --> 00:36:26,799
[newsreader] we have come
to know the face
of rudolph giuliani,
540
00:36:26,801 --> 00:36:29,802
A steady presence
in the morning papers
and evening news.
541
00:36:29,804 --> 00:36:32,856
More than any other us attorney
for the southern district
of new york,
542
00:36:32,858 --> 00:36:36,184
Giuliani has sown himself
into the fabric of this city.
543
00:36:36,186 --> 00:36:39,529
[winerip] he talked about it
in almost a philosophical way,
544
00:36:39,531 --> 00:36:43,983
That I wanna publicize the great
work of our office. But that's
not what was driving him.
545
00:36:43,985 --> 00:36:48,488
What was driving him
was what rudy was doing
and his relentless climb.
546
00:36:48,490 --> 00:36:50,990
It's rumored a lot
that you've got
political ambitions.
547
00:36:50,992 --> 00:36:52,492
Right. I hear it all the time.
[laughs]
548
00:36:52,494 --> 00:36:54,327
Right.
[laughs]
so is true?
549
00:36:54,329 --> 00:36:56,329
No, it's not true. I mean...
550
00:36:56,331 --> 00:36:59,716
The reason I have difficult
in completely eliminating
551
00:36:59,718 --> 00:37:03,386
All speculation about it
is that I will not say I will
never in my entire life
552
00:37:03,388 --> 00:37:05,797
Run for public office
because I don't know the answer
to that.
553
00:37:05,799 --> 00:37:09,559
[mcdonald] I don't think there's
any question that rudy giuliani
used his office
554
00:37:09,561 --> 00:37:13,355
To generate publicity
for himself so that he could run
for mayor, run for president,
555
00:37:13,899 --> 00:37:17,692
Become the lawyer
for the president
of the united states. [laughs]
556
00:37:17,811 --> 00:37:20,979
He would make a name for himself
prosecuting organized crime.
557
00:37:20,981 --> 00:37:23,481
Make a name for himself
in prosecuting
some public corruption
558
00:37:23,483 --> 00:37:24,532
In the city of new york.
559
00:37:25,026 --> 00:37:26,618
After that
he went to wall street.
560
00:37:27,079 --> 00:37:29,821
[randy mastro] back in the 80s
there was insider trading.
561
00:37:29,823 --> 00:37:32,365
Back in the 80s
there were junk bonds.
562
00:37:32,367 --> 00:37:36,202
Back in the 80s
there were some offenses
on wall street
563
00:37:36,204 --> 00:37:40,498
That cried out
for a prosecution.
Yet, prosecutions of wall street
564
00:37:40,500 --> 00:37:44,043
And white collar crime
had not been common
prior to this time.
565
00:37:44,045 --> 00:37:47,597
[kirtzman] you have to remember
that these wall street titans,
566
00:37:47,599 --> 00:37:50,550
They were kind of heroes
to many americans.
567
00:37:50,552 --> 00:37:57,107
They embodied american success
and ingenuity and I don't think
giuliani saw that at all.
568
00:37:57,109 --> 00:38:02,061
I mean, he found
the excess repugnant
569
00:38:02,063 --> 00:38:06,533
And he also saw that
as another vehicle towards fame.
570
00:38:07,193 --> 00:38:09,694
[andrew ross sorkin] this was
his moment to make his name
571
00:38:09,696 --> 00:38:12,905
As the lead prosecutor
in new york
572
00:38:12,907 --> 00:38:17,961
And he saw this
as an opportunity
573
00:38:17,963 --> 00:38:21,748
Not just to find justice,
but I think, in some ways,
574
00:38:21,750 --> 00:38:24,884
To find justice for himself,
which was power.
575
00:38:28,807 --> 00:38:32,925
What started as a surge
of opportunity had transformed
into a zeitgeist
576
00:38:32,927 --> 00:38:36,429
Fueled by money, power and fame.
577
00:38:36,431 --> 00:38:40,433
Tycoons, pop icons,
and desperados alike
were celebrated
578
00:38:40,435 --> 00:38:45,396
By a fawning public regardless
of how they achieved
their fortunes.
579
00:38:45,398 --> 00:38:49,275
Americans had bought into
a new image of success,
hook, line, and sinker.
580
00:38:49,277 --> 00:38:53,654
And fantasized about living
that way too, some day.
581
00:38:53,656 --> 00:38:57,408
[announcer] it's another
dazzling lifestyles
of the rich and famous .
582
00:38:57,410 --> 00:39:00,670
Meet the stars of show business
and big business.
583
00:39:00,672 --> 00:39:04,799
Discover how life's winner live,
love, and spend their fortunes.
584
00:39:07,003 --> 00:39:11,130
Look. America has always been
a country of income inequality.
585
00:39:11,132 --> 00:39:15,927
But in previous generations,
those of great wealth
had the taste
586
00:39:15,929 --> 00:39:20,023
To hide away
and not display themselves.
587
00:39:20,025 --> 00:39:25,695
The 80s really was one
of the first times where a lot
of the nouveau riche
588
00:39:26,356 --> 00:39:32,485
Felt comfortable displaying
that wealth. It was sordid.
It was seamy.
589
00:39:32,487 --> 00:39:34,788
Unless, of course,
you wanted to do it yourself.
590
00:39:35,207 --> 00:39:37,532
Now they're living
in new york
591
00:39:37,534 --> 00:39:40,201
Where it's so clear who are
the masters of the universe
but to make it even worse,
592
00:39:40,203 --> 00:39:43,329
To make it
even more shakespearean,
ivan boesky goes to berkeley.
593
00:39:43,331 --> 00:39:48,668
He gives a commencement address.
And he says,
"greed can be healthy."
594
00:39:48,670 --> 00:39:53,473
[boesky] I urge you, as a part
of your ambitions, seek wealth.
595
00:39:53,633 --> 00:39:56,142
[cheering and applause]
596
00:39:57,512 --> 00:40:00,388
And he gave this speech
that essentially said,
"greed is good."
597
00:40:00,390 --> 00:40:05,393
And of course the speech
is enshrined in the movie
wall street by michael douglas.
598
00:40:05,395 --> 00:40:08,980
Greed,
for lack of a better word,
is good.
599
00:40:08,982 --> 00:40:14,494
Greed is right. Greed works.
600
00:40:15,572 --> 00:40:18,823
Does anyone disagree with that?
No.
601
00:40:18,825 --> 00:40:22,368
To someone of my generation
who knew of berkeley
as a hot bed of, you know,
602
00:40:22,370 --> 00:40:27,424
Left wing student unrest,
it was fascinating
that students at berkeley
603
00:40:27,426 --> 00:40:30,844
Voted to have ivan boesky
be their commencement speaker.
604
00:40:31,087 --> 00:40:37,225
And that... It was the one line
in the entire speech
that drew spontaneous applause.
605
00:40:37,886 --> 00:40:41,855
But do it in a virtuous
and honest way.
606
00:40:42,724 --> 00:40:44,724
[burrough] there was
a new generation
607
00:40:44,726 --> 00:40:47,193
That desperately needed
to hear that this was ok.
608
00:40:47,770 --> 00:40:50,855
They were doing things
that their mothers and fathers
hadn't done.
609
00:40:50,857 --> 00:40:54,734
Maybe their mothers and fathers
had been working on the line
at gm or campbell soup
610
00:40:54,736 --> 00:40:57,695
And here they were
making nothing,
611
00:40:57,697 --> 00:41:01,583
Just making millions of dollars
trading stocks and bonds.
612
00:41:03,453 --> 00:41:04,586
It's all right.
613
00:41:04,954 --> 00:41:06,087
[laughter and cheering]
614
00:41:06,206 --> 00:41:07,955
And to have someone
like boesky say,
615
00:41:07,957 --> 00:41:13,470
"it's ok, you're doing good.
You're pursuing a full life."
616
00:41:13,472 --> 00:41:16,973
You know, I think there is
a generation that really wanted
to hear that message.
617
00:41:18,310 --> 00:41:22,145
Fame. Fortune. Adoration.
618
00:41:22,147 --> 00:41:25,223
For an insecure outsider
who'd conned his way to the top,
619
00:41:25,225 --> 00:41:28,318
It was everything
he'd always wanted.
620
00:41:28,320 --> 00:41:31,070
But he was flying too close
to the sun.
621
00:41:31,656 --> 00:41:36,442
This has got a dark side
because it ain't possible
to dial it back.
622
00:41:36,444 --> 00:41:37,643
Exposure can burn.
623
00:41:38,497 --> 00:41:40,663
[newsreader] dennis levine,
a young investment banker,
624
00:41:40,665 --> 00:41:43,491
Was arrested and charged
with insider trading.
625
00:41:43,493 --> 00:41:48,746
[newsreader] investment banker
dennis levine collected
$12.5 million in illegal profits
626
00:41:48,748 --> 00:41:52,583
[dennis levine] I realize
I've committed very serious
crimes, for which I'm very sorry
627
00:41:52,585 --> 00:41:56,471
[newsreader] levine has pleaded
guilty and will turn over almost
all of his estimated wealth.
628
00:41:56,965 --> 00:42:00,517
The man responsible
for that arrest
is rudolph giuliani,
629
00:42:00,519 --> 00:42:03,594
Us attorney
for the southern district
of new york.
630
00:42:03,596 --> 00:42:07,473
Well, he allegedly obtained
information about mergers
631
00:42:07,475 --> 00:42:12,028
That would take place
in the future
or other types of information
632
00:42:12,030 --> 00:42:15,314
That would have the effect
of driving up the price
of the stock
633
00:42:15,316 --> 00:42:18,284
And bought large blocks
of that stock.
634
00:42:18,861 --> 00:42:22,497
[interviewer] was anyone else
involved in this at all?
Knowingly?
635
00:42:22,615 --> 00:42:25,992
Yes. At this point, though,
I can't identify anyone else.
636
00:42:25,994 --> 00:42:31,289
[journalists] mr. Boesky,
any comment?
Any comment, mr. Boesky?
637
00:42:31,291 --> 00:42:34,050
So many things are too good
to be true in retrospect, right?
638
00:42:34,052 --> 00:42:37,095
If everybody's making fortunes
and the champagne is flowing,
639
00:42:37,630 --> 00:42:39,722
You know it's all gonna come
to a crashing halt.
640
00:42:47,307 --> 00:42:49,899
[dramatic music playing]